How can teenagers make financial transactions online

Do children need accounts?

The savings book for children was yesterday, in Austria the current account for the next generation is becoming more and more popular. Almost all banks today advertise with free account management for adolescents - admittedly with marketing tailored entirely to young customers.

Child accounts are great business - they only run on a credit basis. This means that loans are taboo for children, the account cannot be overdrawn and the child cannot become a debtor. The young customers can only deposit pocket money, make transfers and withdraw money.

Modern and generous

If the image of the banking industry among adults is not at its best at the moment, young savers are a grateful clientele. Banks and savings banks are currently spending a lot of money in order to present themselves to the customers of tomorrow as modern and generous.

With their own account, children learn how to deal with money and financial transactions at an early age, bank representatives assure. Young people in particular who have their own mobile phone or the Internet, for example, experience more financial independence thanks to their own account.

Be careful with online banking

Most banking institutes today offer account packages for adolescents, which in addition to a current account include a so-called overnight money account and a credit card on a credit basis. Care is recommended with online banking: Even if the account management is free, such additional services can entail expenses.

It's worth comparing

Since the features of child and youth accounts differ from bank to bank, it is generally worthwhile to compare the terms and conditions. Some banks do not allow an account to be opened until the age of 16, others from ten. The usage habits of the offspring should be compared with the offers of the banks.

Decide together

Whether children need their own account and whether the advantages or disadvantages outweigh the individual cases is ultimately the decision of the parents. A decision, however, that should be made together with the children.

For example, parents could use the discussion about the pros and cons of having their own account as an opportunity to calmly explain banking to their son or daughter - and what interest is actually all about. (lima, derStandard.at, 7.1.2013)